Section 8 Fair Market Rent (FMR) for ZIP 49060 - 2027

Location: Kalamazoo-Portage, MI | Metro: Barry County, MI HUD Metro FMR Area

Investment Score for ZIP 49060

N/A

Monthly Rent (2BR)

$1,270

Median Price (2BR)

$N/A

1% Rule

Annual Yield

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$960
1 Bedroom	$1,030
2 Bedrooms	$1,270
3 Bedrooms	$1,620
4 Bedrooms	$1,860
5 Bedrooms	$2,158
6 Bedrooms	$2,417
7 Bedrooms	$2,610
8 Bedrooms	$2,741

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
3BR	$1,620	$346,022	0.47%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

2,660

Median Household Income

$134,861

Housing Units

1,243

Renter Percentage

16.8%

Occupancy Rate

84.6%

Renter Occupied

177

The ZIP code 49060, located in Michigan, is a suburban area that offers a mix of residential properties including single-family homes and apartments. The region is characterized by its relatively stable housing market, which makes it an attractive investment opportunity for both landlords and small-portfolio investors.

The Fair Market Rent (FMR) for ZIP 49060 in fiscal year 2024 is set at $950. This figure represents the maximum amount that HUD will pay for a unit to be considered affordable.
The average market rent for properties in ZIP 49060 stands at $347, according to recent Census American Community Survey (ACS) data. This indicates that there is room for rental rates to increase towards the FMR without being overly unaffordable for residents.
The median home value in the area is $373,506, suggesting a moderate property price level that can provide good returns on investment.
Renters make up 16.8% of the housing market in ZIP 49060, indicating a smaller but still significant demand for rental properties.
The median income in the area is $134,861, which is above the national average. This higher income level supports the potential for increased rental rates and property values over time.

Synthesizing these points, ZIP 49060 presents a balanced market for real estate investment. With rental rates below the FMR and a median income that supports higher rents, there is potential for rental properties to command premium prices. The moderate median home value suggests that while the area is not cheap, it offers solid returns relative to the investment. The lower share of renters compared to other areas means that competition among landlords might be less intense, but also implies that the market is not saturated with rental demand. Overall, the area is suitable for investors looking for a stable and moderately growing market.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). Demographics from U.S. Census (2024).

About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.